Apple just made its biggest supply chain bet yet, moving production of all four iPhone 17 models to India for the first time at launch. The shift comes as the company braces for $1.1 billion in quarterly tariffs while navigating escalating trade tensions between the US, China, and India.
Apple is rewriting the global smartphone manufacturing playbook with a historic shift that could reshape how tech giants navigate geopolitical tensions. The company will produce its entire iPhone 17 lineup in India from day one of launch, marking the first time Apple has moved complete production of a new generation outside China, according to Bloomberg.
The timing couldn't be more critical. Apple already expects to pay $1.1 billion in tariffs for the current quarter, making the India production shift both a defensive move and a calculated bet on avoiding future trade restrictions. Currently, Apple's iPhone exports from India to the US are exempted from tariffs, even as the Trump administration maintains a 50 percent tariff on many other Indian imports.
"The move does dodge some tariffs," analyst Patrick Moorhead told investors, but he noted a crucial limitation: iPhone subassemblies are still predominantly manufactured in China before being shipped to India for final assembly. This hybrid approach reflects the complex reality of global supply chains, where complete decoupling from China remains nearly impossible for most tech companies.
Apple's India strategy has been years in the making. The company has steadily increased its manufacturing footprint in the country as part of a broader diversification away from China-centric production. This iPhone 17 milestone represents the culmination of that effort, with reporting that is also developing a successor to the iPhone 16E specifically for Indian manufacturing.